As of the end of July, credit card dues became the fastest-growing sector among those contributing over 1% of total bank loans, rising 22% year-on-year to nearly Rs 2.8 lakh crore, as reported by TOI on September 2. However, loans against gold jewellery experienced the most rapid growth within personal loans, surging by 39%.
Personal loans held the largest share of non-food credit at 32.9%, followed by services at 27.4%, industry at 22.2%, and agriculture and allied activities at 12.8%.
RBI’s sectoral data on bank credit revealed that personal loans grew by 14.4%, reaching nearly Rs 55.3 lakh crore. Credit to agriculture and allied activities also increased by 18.1%, totaling around Rs 21.6 lakh crore. Although home loans, the largest segment within personal loans, grew at a slower rate of 12.8%, they still played a significant role in the overall growth of personal loans, bringing the outstanding amount to Rs 28.1 lakh crore.
Credit card dues were a key factor in this growth, while loans against gold jewellery, despite representing only 0.8% of total bank credit, grew at a remarkable pace of 39%. The data underscores personal loans as a major contributor to credit growth, with agriculture and allied activities also showing substantial increases.